The Financial Reporting Bill was issued on 31 July 2012 and sets out the proposed financial reporting requirements of entities in New Zealand.
The Bill will replace the Financial Reporting Act 1993 and aims to streamline the financial reporting requirements for entities required to prepare general purpose financial statements.
The requirement to prepare general-purpose financial statements will apply to:
- large companies and large overseas companies that carry on business in New Zealand. Large is defined as assets exceeding $60m OR revenue exceeding $30m (assessed over the 2 preceding accounting periods)
- companies with 10 or more shareholders unless, through a 95 % majority vote, the company opts out of compliance
- companies with fewer than 10 shareholders if shareholders who hold at least 5% of the voting shares require the company to comply.